Policy Group Pushes Ohio to Hike its Tax on Gas and Oil Drilling
Natural gas closed at a 17-year price low today. And low prices have raised reservations from lawmakers about the strength of Ohio’s oil and gas industry. But one group is still calling for an increase to the drilling tax.
A struggling market for natural gas has led top Republican and Democratic leaders to hold back on increasing the so-called fracking tax. But the liberal-leaning think tank, Policy Matters Ohio, says data shows companies pumped more natural gas from the state’s shale last year than the year before.
The group’s Wendy Patton says the state needs to act.
“Every year that we wait and we don’t impose an adequate severance tax on growing production, we lose an opportunity to invest in our own state.”
Republican Senate President Keith Faber has suggested drawing up an increased tax plan now and putting it into effect once the market rebounds.